Gross Rent Multiplier (GRM)

Investor Term: 

GRM

Definition: 

Gross rent multiplier (GRM) is a ratio that compares the gross annual rent generated from a property to its market value. It is a measure of how much a property is worth based on its rental income. 

Formula: 

GRM = Market Value / Gross Annual Rent

Example: 

For example, if a property generates $100,000 in annual rent and has a market value of $200,000, then its GRM would be 2.